미곡 약정수매제의 효과와 수매정책 방향

This study analyzes the effect of rice price support program. The program is equivalent to a synthesized call option that provides the minimum guaranteed price to the participating farmer. The theoretical effect is graphically demonstrated. A mathematical programming model is also constructed to simulate the effect of target price changes. The simulation results show that this program can increase the farmers` income when the quantity procured by the program decreases. Since the total budget for the program is fixed each year, the rise of the target price reduces the procurement quantity. The results only show that the farmers would receive higher income without the program. Several alternatives are suggested accordingly.